Question
You own a portfolio with the following expected returns given the various states of the economy. What is the overall portfolio expected return? State of
| You own a portfolio with the following expected returns given the various states of the economy. What is the overall portfolio expected return? |
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs |
| Boom | 27% | 17% |
| Normal | 70 | 8 |
| Recession | 3 | -11 |
| 8.87 percent |
| 9.86 percent |
| 10.23 percent |
| 8.64 percent |
| 6.49 percent |
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Finance And Sustainability
Authors: Karolina Daszyńska-Żygadło, Agnieszka Bem, Bożena Ryszawska, Erika Jáki, Taťána Hajdíková
1st Edition
3030344037, 978-3030344030
